Synthetic Diamonds: Lab-Grown Takeover

The diamond industry is undergoing its most significant transformation in over a century. For decades, the value of a diamond was dictated by geology and artificial scarcity. Today, material science has upended that model. As laboratory-grown diamonds flood the market, they offer a chemically identical product for a fraction of the price. This shift has forced industry giants like De Beers to slash prices and rethink their strategies, fundamentally changing how consumers view luxury and value.

The Science: How We Replicate Nature

To understand why the market is crashing, you first need to understand the product. Lab-grown diamonds are not “fakes” or simulants like cubic zirconia. They are pure crystallized carbon, identical to mined diamonds in every optical, chemical, and physical way.

Scientists currently use two primary methods to create these gems, both of which mimic the geological forces that create diamonds deep within the Earth.

High Pressure High Temperature (HPHT)

This was the original method developed in the 1950s. It involves a massive press (often the size of a room) that exerts crushing force on a small carbon seed.

Pressure: The press applies roughly 1.5 million pounds per square inch (PSI).
Heat: Temperatures reach exceeding 2,700 degrees Fahrenheit.
Result: Molten flux dissolves the carbon source, which then precipitates onto the seed crystal, forming a diamond.

Chemical Vapor Deposition (CVD)

CVD is the more modern, scalable method that has led to the recent market flood. It functions like a high-tech 3D printer for gemstones.

The Process: A thin slice of diamond seed is placed in a vacuum chamber.
The Gas: The chamber is filled with carbon-rich gases, typically methane and hydrogen.
The Plasma: Microwaves heat the gases into a plasma ball. This breaks the molecular bonds, allowing pure carbon atoms to rain down and settle on the seed, layer by atomized layer.
Speed: This process can grow a one-carat gem in a matter of weeks rather than millions of years.

The De Beers Reaction and Price Crash

For generations, De Beers controlled the global diamond supply to keep prices high. The rise of CVD technology broke this monopoly. Initially, the industry tried to dismiss lab-grown stones as inferior. When that failed, they changed tactics.

In 2018, De Beers launched its own lab-grown brand, Lightbox Jewelry. They priced their stones at $800 per carat, a figure significantly lower than the prevailing market rate for lab-grown stones at the time. This was a strategic move intended to anchor the consumer perception of lab diamonds as “cheap fashion jewelry” rather than “forever items.”

However, the strategy has evolved into a price war. As of 2024, the supply of lab-grown diamonds has exploded, driving prices down further.

Price Drop: According to industry analyst Paul Zimnisky, the price of a generic 1-carat lab-grown diamond dropped by over 30% in 2023 alone.
Current Rates: You can now find high-quality lab-grown diamonds for under $1,000 per carat at retailers like Ritani or James Allen, whereas a comparable natural diamond might cost $6,000 to $8,000.
De Beers’ Cuts: In early 2024, De Beers aggressively cut prices on their larger mined stones by roughly 10% to 15% to try to maintain sales volume against the synthetic competition.

Distinguishing the Indistinguishable

A common question is whether a jeweler can tell the difference just by looking. The short answer is no. Because the refractive index and dispersion (sparkle) are identical, a jeweler using a standard loupe cannot separate a high-quality lab diamond from a mined one.

Identification requires advanced spectroscopic equipment found in gemological labs.

Type IIa Purity: Most lab-grown diamonds are classified as Type IIa. This is a category of diamond that is almost 100% pure carbon with no nitrogen impurities. In nature, Type IIa diamonds are incredibly rare (less than 2% of mined stones). In the lab, they are the standard.
Growth Patterns: Under specialized UV light or magnification, experts look for growth morphology. HPHT diamonds often show cubic growth patterns, while natural diamonds show octahedral growth. CVD diamonds may show distinct strain patterns or striations.

Major grading laboratories, including the Gemological Institute of America (GIA) and the International Gemological Institute (IGI), now issue full grading reports for lab-grown diamonds. These reports clearly state “Laboratory-Grown” on the certificate and often laser-inscribe the girdle of the stone with the report number and LG designation.

The Environmental Argument

Science has also provided an ethical alternative to the often controversial mining industry. While the “blood diamond” trade has been largely curtailed by the Kimberley Process, mining still requires moving tons of earth.

Earth Displacement: To find a 1-carat natural diamond, miners must typically displace nearly 250 tons of earth. This disrupts local ecosystems and water tables.
Energy Consumption: Lab diamonds are not perfectly green. The HPHT and CVD processes are energy-intensive. However, many producers, such as Diamond Foundry, have moved to 100% hydro-power or solar certifications to reach carbon-neutral status.

Resale Value: The Economic Reality

While lab-grown diamonds are a triumph of science and a win for the consumer’s wallet at the register, they behave differently as financial assets.

Natural diamonds retain some resale value, though usually only 20% to 50% of the retail price. Lab-grown diamonds, however, have near-zero resale value. Because they are a manufactured technology product, they are subject to the same economics as flat-screen TVs: as technology improves, production becomes cheaper and faster.

A lab diamond bought for $2,000 five years ago might cost $500 today. Jewelers rarely buy back lab-grown stones because they can simply order a new one from a supplier for a wholesale price of a few hundred dollars. Consumers should view lab diamonds as a discretionary expense for enjoyment, not an investment vehicle.

Frequently Asked Questions

Are lab-grown diamonds “real” diamonds? Yes. The US Federal Trade Commission (FTC) ruled in 2018 that a diamond is a diamond, regardless of origin. They removed the word “natural” from the essential definition of a diamond. They are chemically, physically, and optically identical to mined stones.

Do lab-grown diamonds get cloudy over time? No. Unlike cubic zirconia (CZ) or moissanite, which can scratch or absorb oils, lab-grown diamonds are the hardest known material on earth (10 on the Mohs scale). They will remain clear and sparkly forever, just like a mined diamond.

Why are prices dropping so fast? The drop is driven by manufacturing efficiency. China and India have ramped up production facilities significantly. As the technology to create CVD diamonds becomes more accessible, the supply increases, causing the price per carat to plummet.

Can I insure a lab-grown diamond? Yes. Major insurance providers like Jewelers Mutual and standard homeowners policies will insure lab-grown diamonds. You will need to provide the receipt and the grading report (typically IGI or GIA) to establish the replacement value.